I have received a lease offer for 5.97 net mineral acres at .25% royalty and a bonus of $1500 per net mineral acre.. It’s located in Section 20, Block 74, A-1486. I’d appreciate an opinion on whether the bonus is enough. Thanks.
Good question! Doesn’t seem to be much activity in this area. I have seen 3k per acre being offered SW of you about 3 miles in blk 26 also at .25. I would definitely consult someone before signing to make sure your get favorable terms and a good bonus.
Personally, $1500 per NMA is a good deal for this location / especially with the 25% royalty interest.
Any extension offered with the lease?
Make sure you sign a “no cost” lease to avoid deductions from your royalty revenue.
Area is up on the edge of the Central Basin Platform - not in the prolific Delaware Basin area to the west. Odds are that the group targeting this area is looking at deeper targets (Barnett, Woodford, etc.?)
If you had a much larger NMA position (e.g. 10-20 times larger), you may be able to push for higher bonus.
Realize that you will have a small part of any Drilling Unit (which will be a minimum of 160 acres but probably more like 320 acres)